Industry News

SINGAPORE CONGESTION - DELAYS AND INCREASED FREIGHT PRICING

Congestion at Singapore, the second-busiest container port globally, has reached critical levels, resulting in significant delays and contributing to a worldwide shortage of ships and containers. Major carriers are warning that diversions through the Red Sea are causing significant port congestion, particularly in Southeast Asia and Singapore, with Linerlytica reporting severe backlogs and increased waiting times for berths. It has been reported that vesslels face waits of up to seven days to berth, with up to 450,000 TEU in the queue.

The ongoing threat from the Houthi forces has led to even longer transit routes around South Africa and the bypassing of Port Kelang in Malaysia. Nearly 7% of the global fleet is affected by this congestion, which is driving up carrier rates and is anticipated to deteriorate further in June.

The delays are causing vessel bunching and downstream port disruptions, adversely affecting the reliability of Asian export services and increasing shipping costs, as reflected in the rising prices of China's container pricing. Carriers are being forced to extend charters, push all available vessels into service, and reroute shipments, contributing to vessel bunching and higher shipping costs, with current prices nearing pandemic levels on many tradelanes. 

Further information is available in the below links:-

https://theloadstar.com/box-ships-omitting-singapore-call-as-port-congestion-hits-critical-level/

https://www.maritime-executive.com/article/report-singapore-port-congestion-mounts-as-ships-divert-from-red-sea

TCF is continuing to work with our partners to find alternative routes where possible during this period. Should you require further information on this subject please contact your local TCF representative.